Doom-mongering warnings about the risks of investing are deterring women from saving more money and have become an unnecessary barrier, a new study has found.
Women are investing up to 21 per cent less money in the stock market as a result of ‘over-egged’ messaging about the risks taken when you invest in shares, according to trials by trade body Tisa and the University of Nottingham.
That’s despite women holding 52 per cent of the 11.8 million Isa accounts at one of Britain’s largest stockbrokers Hargreaves Lansdown.
Put off: Doom-mongering warnings about investment risks are deterring women from saving more money
Women also tend to have a larger amount invested. The study found that alternative wording on financial documents which is more informative and less off-putting to cautious investors would have a significant impact on the amount savers invest in the stock market.
This is because women typically have a different approach to overseeing money compared to men – many don’t see it as their own money but rather family money shared with children, a partner or parents, according to a survey by Hargreaves Lansdown.
This means women are less willing to take risks as they view themselves as shouldering more responsibility.
Six in ten women admitted they find the terminology and wording used a barrier to investing.
However, women take appropriate risks and are less likely to invest impulsively.
‘Women understand that building wealth is a slow burn. They steer clear of speculative, risky or hard to understand investments,’ the survey said.
